Monday Closing Livestock Market Summary - Cattle Futures Blast Open the Week With Triple-Digit Gains

GENERAL COMMENTS

Feedlot country hosted a normally quiet Monday with the distribution of new showlists about the only item on the agenda. The late month offering appears to be mixed, larger in Kansas, smaller in Texas and Colorado, and about steady in Nebraska. Overall, the number of ready steers and heifers appears to be about stead with last week. According to the closing report, the national hog base is $1.20 lower ($63.00-67.75, weighted average $65.61). Corn futures closed 2 cents plus lower tied to a lack of buying interest and ideas of a smaller yet fully adequate harvest. The stock market closed mixed with the Dow off 5 and the Nasdaq up 17.

LIVE CATTLE

Spot August closed only 25 points higher, but the rest of the live complex exploded by 110 to 177. The triple-digit advance was apparently sparked by news released on Friday that July placement activity was smaller than expected. Interestingly, soon-to-be-spot October closed smack-dab in the crosshairs formed by the 40-moving average on one hand and the 100-day moving average on the other. A move above this technically sensitive area could trigger new buying energy. Beef cut-outs: modestly higher, up $.18 (choice, $191.50) to $.32 (select, $188.62) with moderate demand and moderate to heavy offerings (70 loads of choice cuts, 24 loads of select cuts, 21 loads of trimmings, 15 loads of ground beef).

TUESDAY'S CASH CATTLE CALL:

Steady to $2 lower. Bids and asking prices will probably remain poorly defined tomorrow with serious business perhaps delayed until midweek or later.

FEEDER CATTLE

Feeder futures also opened the week with an impressive surge forward. Those most issues settle well off session highs, prices still finished 105 to 317 in the green. While September and October remain checked by 40 and 100-day moving averages, November managed to spike and close above both levels of resistance. On estimated receipts of 5,100 head (up from 4,342 last week but down from 6,035 in 2016), Oklahoma City sold replacement steers and heifers mostly $2-5 higher (instances $7-$8 higher on lighter feeders). CME cash feeder index: 08/25: 142.61, off .63.

LEAN HOGS

Market bears just can't seem to stop in this market. Such persistence is even more impressive give the board's deep discounts to cash. Contracts settled off 20 to 145 with the first four issues collapsing by triple-digits. Spot October sank to the lowest level seen since last December. The carcass value closed moderately lower as further belly weakness (i.e., off $6.21) offset butt, ham, and rib strength. Pork cut-out: $86.10, off $.31. CME cash lean index for 08/24: 78.23, off 1.17 (DTN Projected lean index for 08/25: 76.76, off 1.47).

TUESDAY'S CASH HOG CALL:

$1-2 lower. Look for cash buyers to remains on the defensive when biz resume in the morning, mindful of generous hog supplies and struggling product demand.